To the scoreboard:
Dow: 24,205.17 +64.26 (+0.27%)
S&P 500: 2,637.48 +8.21 (+0.31%)
AUD/USD: 0.7513 -0.0050 (-0.66%)
ASX200 SPI futures (December contracts): 6,002 (+21)
1. AUD is in the wars: Yesterday’s surprisingly narrow trade surplus in October further weighed on the Aussie in the wake of Wednesday’s miss on Q3 GDP. The AUD subsequently fell to a six-month low overnight as the US dollar index edged higher for fifth straight session, with reports this morning that the White House doesn’t expect a government shutdown over US debt ceiling negotiations.
2. Gold breaks down: Amid broader strength in the US dollar, gold fell through recent support and is below US1,250 an ounce for the first time since July. Spot prices for iron ore also tanked last night, crashing by 5% after a chaotic session on Chinese futures markets. Oil bounced back from yesterday’s falls while copper is holding steady amid the recent falls in other base metals.
3. The day ahead: Australia has October housing finance data at 11:30am AEDT, after a sharp fall in investor loans in September. Regionally, there’s Japanese GDP and Chinese trade data ahead of the key international data release of the week — US employment figures later tonight comprised of non-farm payroll, unemployment and average weekly earnings.
4. Bitcoin stampede: The world’s biggest cryptocurrency is above $US15,000 amid chaotic scenes as exchanges struggle to respond to demand. Prices skyrocketed on large US exchange Coinbase before the site crashed, while different exchanges are showing vastly different prices. Meanwhile, industry leaders are concerned about a lack of consultation before the launch of Bitcoin futures on Monday.
5. Tech stocks bounce back: US markets posted steady gains as the big tech stocks continue to rebound from this week’s selloff, amid reports that the new tax reforms could save them billions. And some historical research from Bank of America suggests that if and when the current bull market comes to an end, price falls won’t be too drastic.
6. New Fed nominee: Here’s a good rundown on Marvin Goodfriend, one of the nominees expected to be appointed to the board of the US Federal Reserve in 2018. Goodfriend is a trained economist who wasn’t a huge fan of the Fed’s quantitative easing program and leans to the hawkish side on controlling inflation.
Have a great weekend, I’m on Twitter @Mr_SamJacobs.